In the expansion phase of a business cycle:

Name: In the expansion phase of a business cycle:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

During the expansion phase of a business cycle, the economy experiences an increase in employment and output. This is because economic growth is occurring, and businesses are producing more goods and services to meet increasing demand. While inflation may increase slightly during this phase, it is not significant enough to decrease productive capacity. Therefore, Choice D is the correct answer.

In the Expansion Phase of a Business Cycle